Nevada Gold Trends

[Ed Monton]

Gryphon Gold closes $5.9-million IPO; lists on TSX


2005-12-22 09:39 ET - News Release

Mr. Tony Ker reports

GRYPHON GOLD ANNOUNCES CLOSING OF IPO AND TSX LISTING

Gryphon Gold Corp. has completed today, Dec. 22, 2005, its initial public offering of 6.9 million units for gross proceeds of $5.9-million. The units were sold at a price of 85 cents each and consist of one common share and one warrant. Each warrant is exercisable for a period of 12 months at a price of $1.15. The common shares are listed on the Toronto Stock Exchange under the symbol GGN.

The offering was underwritten by a syndicate of Canadian underwriters which included Desjardins Securities, CIBC World Markets, Border Investment Partners and Orion Securities. The units were offered for sale pursuant to a prospectus filed in four Canadian provinces (British Columbia, Alberta, Manitoba and Ontario). The units were also registered in a registration statement filed with the United States Securities and Exchange Commission.

The proceeds of the offering will be used principally for the completion of the company's feasibility study for its Borealis property and its exploration program on the Borealis property, as well as for working capital. Gryphon Gold is preparing a feasibility study on the redevelopment of the Borealis mine, last operated in 1991. As a part of the feasibility work, the company is progressing with engineering and fieldwork to further define available gold mineralization.